Annual adjustments to income and asset limits for public rental housing applicants are necessary to ensure rational allocation of limited resources to those in genuine need, Deputy Director of Housing Tam Wing-pong says.

Speaking on a radio talkshow today, Mr Tam said this will help maintain the average waiting time for public rental housing within three years, and control the number of applicants on the waiting list.

Under the established mechanism, two key variables will be taken in account when determining the limits - the Consumer Price Index and the rental levels in the private market.

Mr Tam said adjustments may go up or down, depending on the trend of two key variables.

For the coming financial year, it is proposed to lower the income and asset limits by 4.3% and 9% respectively. Some 6,000 non-owner households living in private flats may be excluded from the eligibility net under the proposed revised limits.

Income limits are derived from a household expenditure approach. Limits for different household sizes are calculated by adding the respective sums of housing and non-housing expenditures, plus a 5 % contingency provision.

Asset limits are set at levels for households to finance the housing expenditure of renting private flats of comparable size to public rental housing for six years.